If you received Chapter 35 VA educational benefits, you should still go ahead and file your 1098-T. This ensures your return matches what the IRS has and accounts for all fees or scholarships on the 1098-T.
Just keep in mind that you can't claim a tuition credit or deduction for the amounts covered by these benefits. The good news is, VA educational benefits are tax-free and don't need to be included as income on your federal tax return.
For more details, you can refer to the IRS guidelines on tax exclusion for veterans education benefits
